Newsonline Nigeria reports that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has increased the benchmark interest rate (MPR) by 25 basis points to 18.75% from its initial 18.5%, representing the highest interest rate in 22 years.
The announcement was made by the acting CBN governor, Folashodun Shonubi during a press briefing, after the two-day MPC meeting on Tuesday, 25th July 2023. This is the first MPC meeting chaired by the new acting CBN governor, following the suspension of Godwin Emefiele.
This is also the first MPC meeting under President Bola Tinubu’s administration.
According to the MPC, the decision to further hike interest rates was driven by the rate of rising inflation in the country.
Nigeria’s headline inflation surged to 22.79% in June 2023, which is the highest rate since September 2005. This is despite multiple interest rate hikes by the CBN in the last 14 months.
Although, inflation is expected to increase further on the back of the twin effects of petrol subsidy removal and the convergence of the exchange rate.
Since the CBN switched the gear to a hawkish stance in May 2022, the interest rate has increased by 725 basis points from 11.5% to 18.75%, while inflation has moved from 17.71% to 22.79%.
According to Mr. Shonubi, the hike in interest rate will help narrow the negative real rate of returns as well as encourage foreign investments.
Nigeria’s money supply increased by a whopping N8.8 trillion in June 2023 to N64.3 trillion from N55.5 trillion recorded as of the previous month. This is the highest level on record according to data from the CBN.
This is a developing story…
Iran’s First Vice President, Mohammad Mokhber is set to replace Raisi ahead of election. …
A coalition has put President Tinubu under pressure to intervene in Yahaya Bello’s EFCC trial.…
UK Airline Regulator has reported Air Peace to the NCAA over alleged safety violations. …
Peter Obi Supporters, Obidients have begun massive preparation for the 2027 elections. NewsOnline Nigeria…
FG has begun nationwide groundbreaking for ‘Renewed Hope’ cities and estates. NewsOnline Nigeria reports…
Black market dollar to naira exchange rate Monday 20th May 2024 can be accessed below.…